Economic trends in the territory of Regional Chambers of Commerce and Industry of the Nišava, and

Administrative Districts

Niš, April 2019

Economic trends in the territory Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts

THE CONTENT

1. Basic data on territory, local self-governments and population ...... 3 1.1. Surface and degree of development ...... 3 1.2 Population ...... 4 2. National accounts ...... 5 2.1. Gross domestic product and gross value added (Regional GDP) ...... 5 2.2. Investments (by local governments) ...... 6 3. Industrial production (RZS data for internal use of RCC / CC BG) ...... 8 4. Agricultural production in the territory of RCC ...... 8 5. Construction ...... 9 6. Traffic ...... 10 7. Tourism ...... 11 8. Employment and earnings ...... 12 8.1. Registered employment (by local government units) ...... 12 8.2. Earnings ...... 13 9. Unemployment ...... 14 10. Foreign trade of goods ...... 15 11. Structure of the economy ...... 17 12. Foreign direct investment in the territory of RPK ...... 18 Methodological notes ...... 188 Sources of data ...... 20

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Economic trends in the territory Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts

1. Basic data on territory, local self-governments and population

1.1. Surface and degree of development

The territory covered by the Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts with headquarters in Nis covers an area of 7.720 square kilometers, which is 8.74 per cent of the total territory of the Republic of . Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts covers economic activities of 19 local self-government units (municipal area: City of Niš with its municipalities (Nis-GO Mediana, Nis-GO , Nis-GO , Nis-GO Crveni Krst, Niš-GO Niska Banja, , , Merošina, Razanj, Gadžin Han, , Pirot, , Babušnica, Dimitrovgrad, , , Kuršumlija, Žitorađa). The largest territorial area occupies the City of Pirot with 16% of the total area. When it comes to the level of development, the highest level of development is in the City of Nis (listed municipalities are individual), as development group I, and the City of Pirot as development group II.

Table 1. Surface and degree of development Surface area Degree of Name RCC and LSG Contribution, % у km2 Republic of development РПК Serbia Republic of Serbia 88.499 - - - Regional Chambers of Commerce and Industry of the Nišava, Pirot 7.720 8,74 100 - and Toplica Administrative Districts City of Niš, total 596 0,67 7,73 I group Niš-GO 10 0,01 0,13 I group Niš-GO Pantelej 141 0,16 1,83 I group Niš-Go Cveni Кrst 182 0,21 2,36 I group Niš-GO Palilula 117 0,13 1,52 I group Niš-GO Niška Banja 146 0,16 1,89 I group Aleksinac 707 0,80 9,16 IV group Doljevac 121 0,14 1,57 IV group Merošina 193 0,22 2,50 IV group Ražanj 289 0,33 3,74 IV group Gadžin Han 325 0,37 4,21 IV group Svrljig 497 0,56 6,44 IV group City of Pirot 1.232 1,39 15,96 II group Bela Palanka 517 0,58 6,70 IV group Babušnica 529 0,60 6,85 IV group Dimitrovgrad 483 0,55 6,26 IV group City of Prokuplje 759 0,86 9,83 III group Blace 306 0,35 3,96 IV group Кuršumlija 952 1,08 12,33 IV group Žitorađa 214 0,24 2,77 IV group Source: Statistical Office of the Republic of Serbia, Republic Geodetic Authority, Decree on the establishment of a single list of regional development and local self-government units for 2014.

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Economic trends in the territory Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts

1.2 Population

According to the estimates of the Republic Institute for Statistics in mid 2016, the number of inhabitants in the territory of the Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts amounted to 541,371, of which 48% live on the territory of the City of Nis, 10% in the territory of the City of Pirot and the Municipality of Aleksinac 8% in the City of Prokuplje. Estimates were made on the basis of the Census of population, households and housing in 2011 and data on the natural and mechanical movement of the population (internal migration).

Table 2. Estimated population in mid 2015 and 2016 Number of inhabitants Contribution (2016), % (estimate) Index Name RCC and LSG Republic of 2016/2015. 2015. 2016. РПК Serbia Republic of Serbia 7.095.383 7.058.322 100,0 - 99,5 Regional Chambers of Commerce and Industry of the Nišava, Pirot and 545.834 541.371 7,67 100,0 99,18 Toplica Administrative Districts City of Niš, total 258.163 257.603 3,65 47,57 99,78 Niš-GO Medijana 85.525 85.400 1,21 15,77 99,85 Niš-GO Pantelej 53.363 53.339 0,76 9,85 99,96 Niš-Go Cveni Кrst 31.652 31.368 0,44 5,79 99,10 Niš-GO Niška Banja 14.444 14.395 0,20 2,66 99,66 Niš-GO Palilula 73.179 73.101 1,04 13,50 99,89 Aleksinac 49.628 48.963 0,69 9,04 98,66 Doljevac 18.300 18.116 0,26 3,35 98,99 Merošina 13.520 13.379 0,19 2,47 98,96 Ražanj 8.554 8.382 0,12 1,55 97,99 Gadžin Han 7.642 7.428 0,11 1,37 97,20 Svrljig 13.364 13.145 0,19 2,43 98,36 City of Pirot 56.143 55.628 0,79 10,28 99,08 Bela Palanka 11.471 11.283 0,16 2,08 98,36 Babušnica 11.360 11.060 0,16 2,04 97,36 Dimitrovgrad 9.703 9.542 0,14 1,76 98,34 City of Prokuplje 42.755 42.275 0,60 7,81 98,88 Blace 11.135 10.935 0,15 2,02 98,20 Кuršumlija 18.407 18.117 0,26 3,35 98,42 Žitorađa 15.689 15.516 0,22 2,87 98,90 Source: Statistical Office of the Republic of Serbia

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Economic trends in the territory Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts

2. National accounts

2.1. Gross domestic product and gross value added (Regional GDP)

In the structure of GDP of the RCC Nišava, Pirot and Toplica Administrative Districts, the most frequent services are 46.5%, which is below the national average, 40.3%, which is above the national average and agriculture with 8.1%, which is at the level of the national average. Construction accounts for 5.1%, which is slightly above the national average.

Chart 1: The structure of gross value added (GDP) in the Region of RCC Nišava, Pirot and Toplica Administrative Districts in 2016

Agriculture Industry Construction Services Nišava district 4,1% 20,8% 4,0% 37,2% 1,4% 14,9% 0,5% 5,2% 2,6% 4,6% 0,6% 4,1% RCC - Niš 8,1% 40,3% 5,1% 46,5%

Source: Calculation of the RCC based on the data of the Republic Statistical Office

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Economic trends in the territory Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts

2.2. Investments (by local governments)

The largest investments in basic funds in the region of RCC Nišava, Pirot and Toplica Administrative Districts in 2017 were in the city of Nis with the amount of 7,736,085,000 RSD, which is 87.5% of the total amount.

Table 3. Payments for investments in basic funds by technical structure, 2017 (in 000 RSD) Cultivated Construction Domestic Import Intellectual Name RCC and LSG Total Land biological works equipment equipment property resources Republic of Serbia Regional Chambers of Commerce and Industry of the 8.833.525 3.422.139 89.683 2.012.808 3.228.621 19.800 60.474 Nišava, Pirot and

Toplica Administrative Districts City of Niš, total 7.736.085 2.784.541 77.927 1.747.473 3.054.741 19.800 51.603 Niš-GO Medijana 3.545.631 2.336.837 204 695.122 500.426 0 13.042 Niš-GO Pantelej 424.161 76.701 6.360 212.794 125.536 0 2.770 Niš-Go Cveni Кrst 3.330.355 323.484 52.308 588.362 2.324.928 19.800 21.473 Niš-GO Niška Banja 63.410 4.438 0 7.624 51.102 0 246 Niš-GO Palilula 372.528 43.081 19.055 243.571 52.749 0 14.072 Aleksinac 478.801 205.248 4.673 110.890 155.690 0 2.300 Doljevac 123.171 93.193 1.314 13.861 10.795 0 4.008 Merošina 206.693 149.975 1.962 48.104 6.378 0 274 Ražanj 70.167 57.559 0 12.476 0 0 132 Gadžin Han 62.489 26.623 541 34.716 303 0 306 Svrljig 156.119 105.000 3.266 45.288 714 0 1.851 City of Pirot 110.137 99.488 478 6.690 0 0 3.481 Bela Palanka 110.137 99.488 478 6.690 0 0 3.481 Babušnica 361.013 81.592 0 38.476 236.474 0 4.471 Dimitrovgrad 110.668 83.912 2.720 23.839 197 0 0 City of Prokuplje 26.629 13.509 1.350 4.230 7.529 0 9 Blace 4.859 1.472 124 945 2.295 0 22 Кuršumlija 4.859 1.472 124 945 2.295 0 22 Žitorađa 367 175 87 96 4 2 0 Source: Statistical Office of the Republic of Serbia

In the RCC Nišava, Pirot and Toplica Administrative Districts total investments in 2017 amounted to 17,439,506 (in thousands of RSD), out of which the investments with domestic capital amounted to

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Economic trends in the territory Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts

8,597,296, or 49.3%, investments with foreign capital were 8.562.294, or 49.1%, and investments with mixed capital were 279.296, or 1.6%.

Table 4. Total investments by origin of capital, 2017 (in 000 RSD) Home Foreign Mixed Name RCC and LSG Total No tag capital capital capital Republic of Serbia Regional Chambers of Commerce and Industry of the 17.439.516 8.597.296 8.562.924 279.296 Nišava, Pirot and 0

Toplica Administrative Districts City of Niš, total 7.736.085 0 4.788.680 2.670.852 276.553 3.545.631 0 2.722.534 570.286 252.811 Niš-GO Medijana

424.161 0 256.886 167.275 0 Niš-GO Pantelej

3.330.355 0 1.437.473 1.869.140 23.742 Niš-Go Cveni Кrst

63.410 0 63.410 0 0 Niš-GO Niška Banja

372.528 0 308.377 64.151 0 Niš-GO Palilula

478.801 0 307.921 168.137 2.743 Aleksinac

123.171 0 123.171 0 0 Doljevac

206.693 Merošina 0 4.684 202.009 0

70.167 0 70.167 Ražanj 0 0

62.489 0 62.489 Gadžin Han 0 0

Svrljig 156.119 0 138.785 17.334 0 3.702.306 0 1.150.848 2.551.458 City of Pirot 0

110.137 0 110.137 Bela Palanka 0 0

361.013 0 353.966 7.047 Babušnica 0

110.668 0 110.668 Dimitrovgrad 0 0

3.231.187 0 285.100 2.946.087 City of Prokuplje 0

456.434 456.434 Blace 0 0 0

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Economic trends in the territory Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts

Home Foreign Mixed Name RCC and LSG Total No tag capital capital capital 589.674 589.674 Кuršumlija 0 0 0

44.572 44.572 Žitorađa 0 0 0

Source: Statistical Office of the Republic of Serbia

3. Industrial production

Industry sector of the Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts consists of six associations: Association for Metal ..., Association for Construction ..., Association for Chemical..., Association for Textile..., Association for Energy ... and Association for Pharmaceutical and medical industry, with 146 different activity codes and 1,076 companies, which is 16,20% compared to the previous period (926). According to the latest data for the APR for 2017, the business income of all companies was 178.519.926.000 RSD, or 33.45% more compared to the previous year (133.776.177.000 RSD). The number of workers, of all PD Industries, was 28,440, which is 12,92% more than in the previous period (25,412). In the Sector of Industry, the most dominant companies are companies with a size of 4 - large PD, which has 6, and which employed 11,469 workers and earned business income of 109,466,738,000 RSD. It can be seen from the enclosure that there is an increase in industrial production in the observed periods SI.

4. Agricultural production in the territory of RCC

In the territory of Nišava, Pirot and Toplica Administrative Districts covered by RCC Niš, it is estimated that 52000 ha were sown with wheat crops in the past year, and 55000 ha with corn. Compared to the perennial average, that amounts to 15-20% less areas under corn, due to the very unfavorable and dry year during 2017 and very low corn yield, as well as the rarely favorable conditions for wheat sowing. Wheat yield was about 4 tons per hectare, while corn yield was about 8 tons per hectare.

In vegetable farming this year was kind for some species and unfavorable to others. First began the production of tomatoes and cucumbers in greenhouses. Production was somewhat later than usual, but crops, especially tomatoes, accelerated the vegetation and maturation was timely. However, most cucumber and tomato producers are unhappy with the price of their product. The start price of tomatoes is 30-40% below the perennial average.

Potatoes with regular and adequate lightning protection in the production area has given rare excellent yields. It can be said that the average yield of potatoes was about 15 t/ha, and there were also producers and with a yield of 40 to 50 t/ha. Unfortunately, heavy moisture and frequent rainfall made it difficult to achieve high quality trowel, increased moisture of the tuber, and later deterioration of the tubers and significant damage to the warehouses.

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Economic trends in the territory Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts

When it comes to fruit-growing production, frequent precipitation during the spring and summer months led to the disease and pests in fruit-plants, which resulted in the decrease of fruit quality. In some localities, the hail also caused damages to the fruits. In the production of plums, rusty plums were often present in plantations compared to the past vegetation. The problem with fruit production is the lack of processing capacities in our area. Many capacities have been built or revitalized in recent years, for example, the cold storage in Aleksinac, but that is still insufficient for the processing of raw materials, primarily fruits in this area. Bacteriophage was registered with pear and quince. The Asian fruit fly that appeared in the area in recent years has been a huge problem in the production of blackberries, raspberries, of re-cultivating varieties, as well as vines, resulting in the appearance of rotting during maturation. The occurrence of cicadas on the vineyard is alarming, and due to its appearance, the spread of the phytoplasma of the vines.

In livestock production there is a constant decrease in cattle breeding regarding the number of dairy cows, while on the other hand there is an increase in the number of cattles for fattening, which is the result of the low price of milk in the purchase and slightly increased price of cattle. There is a trend of farm consolidation, i.e. increasing the capacity of existing farms and forming the so- called farms-goods manufacturers. Swine indistry is at the level of perennial averages with periodic oscillations in production and it follows market needs.

5. Construction

Association for the construction, building materials industry and housing industry, CCS - RCC Nis, according to official figures APR for 2017, is the second largest in the SI, just behind the Association for the metal and engineering, electrical engineering, metal mines and metallurgy.

In the Construction Association there are 333 companies with 23 different activity codes and 3,203 workers. Operating income, realized by the Association for Construction in the mentioned period, is 20,442,883,000 RSD.

The most dominant branches in the Construction Association ... are:

- Construction of residential and non-residential buildings (106 PD, 748 workers, PP 5.653.388.000 CSD); - Construction of roads and highways (23 PD, 956 workers, 8,890,310,000 RSD); - Engineering activities and technical consulting (59 PD, 239 workers, 745.476.000 RSD);

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Economic trends in the territory Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts

6. Traffic

In the area of RCC of the Nišava, Pirot and Toplica Administrative Districts, there is passenger and cargo transport as a part of road transport, passenger and cargo transport as a part of rail transport, as well as passenger and cargo transport in air transport. 269 companies were registered for carrying out transport activities.

Travel infrastructure The most important road in the territory is the international highway E-75, which is located on the territory north of Niš, on the E-75 highway that leads to Skopje, Thessaloniki and Athens and the international E-80 route leading to . Apart from Corridor X, the E-771 Nis-Svrljig-Zaječar-- -Turnu Severin, the regional road M-25 Niš-Prokuplje-Kuršumlija-Podujevo-Pristina, as well as the regional road M- 9 Pirot-Babushnica----Pristina. The south and east end of Corridor 10 will be completed in 2019. It is expected that in 2020 the construction of the Nis-- Pristina highway, worth 5 billion euros, will begin. The total length of the state roads in the region is 1315,60 km. The length of the state roads of the first order is 451,20 km, of which the length of the highways is 182,00 km. The length of the second-tier state roads is 864,40 km.

Railway infrastructure There are two important intersections on the territory of the region: One is the city of Niš, where the -Niš railway line, marked 70, is separated into the routes Niš-Svrljig-Zaječar-Pristanište Prahovo marked 75, Niš-Pirot-Border with the Republic of marked 80, as well as the route Niš-Doljevac- Leskovac-Preševo-State border with Macedonia marked 90. The second important intersection is Doljevac, in which the route Doljevac-- Polje marked 85 is allocated from the main route marked 90. There are three main routes in the region 70,80 and 90 belonging to the Corridor X, and two of the regional 75 and 85 linking the area to the east of Serbia, or with Kosovo. The Niš-Belgrade Railway, marked 90, is dual-colored and electrified throughout the territory of the Nishava district, although the electrical equipment has deteriorated and reconstruction is needed. According to the strategic plan for the construction of Corridor X, EUR 1.073 billion is to be invested in this section. The first set of agreements worth more than 200 million euros of loans and grants from EU funds related to the reconstruction and modernization of the railway line Nis - Dimitrovgrad on Corridor 10 were signed. The first agreement, worth 44.66 million euros, refers to works on reconstruction and modernization of existing railway infrastructure on the section Sićevo - Dimitrovgrad and preparatory work for electrification and signaling. The second agreement worth € 28.37 million refers to works on electrification and signaling of the northern bypass around the city of Niš and works on electrification and signaling on sections Crveni Krst - the road with the bypass and Sićevo - Dimitrovgrad.

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Economic trends in the territory Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts

Airport In all modes of transport there is a growth in the volume of passenger and cargo transport, and especially the development of Aerodrom Niš, which had 351,581 passengers in 2018 , as well as goods transport of 688,307 tons. Air traffic takes place via airport Konstatin Veliki, which is 4 km from the center of Nis. The airport is located in the zone with very favorable weather conditions throughout the year, with few foggy and snowy days, so in the past period it was used as an alternative airport for airports in Pristina, Podgorica, Belgrade, Tivat, Ohrid, Skopje and Sofia. The airports is used regularly for charter flights and alternative landings: JAT, Montenegro Airlines, Aviogenex, Macedonian Airline, Balkan, Tea, Crossair, Deutche BA, Lufthansa, Thomson and others. Konstantin Veliki Airport is located at an altitude of 197 m. The airport was built in 1986, and in 2003 reconstruction of the summer-runway and installation of a light marking system was carried out. Runway is 2500 m long, 45 m wide, beside which there is a platform of 275 x 100 m, as well as a 25 m wide track. There are 4 marked parking spaces for the aircraft on the platform. The total capacity of the airport in emergency situations is 20 aircrafts. In the summer season of 2019, there were routes to Memmingen, Vienna, Basel (Wizzair), Bratislava, Dortmund, Malmo, Milan, Berlin and Stockholm (Ryanair) and Zurich (Swissair) New lines, installation of accessory lights for category 1, and the development of a project to expand the passenger terminal are just some of the plans for 2019. Subsidies for new lines will start from July 1, 2019, will last until the end of 2021 and amount to 5 million euros. The lines will connect Niš and Nuremberg, Frankfurt (Han), Rome, Hanover, Ljubljana, Salzburg, Bologna, Budapest, Gothenburg, Friedrichshafen, Karlsruhe and Tivat.

* Data source Regional Development Agency South

It is expected that the volume of transport will increase in the coming period. The Government of the Republic of Serbia has published a list of 12 lines of public importance that will be established from the airport "Konstantin Veliki" in Niš. In the decision of the Government of the Republic of Serbia it is stated that the lines of public importance for Niš are to Nuremberg, Frankfurt, Rome, Hanover, Ljubljana, Salzburg, Bologna, Budapest, Gothenburg, Friedrichshafen, Karlrue and Tivat. The list is composed of 11 regular and one seasonal route. New lines would most closely link Niš with Germany, with five routes, and then Italy with two new lines. The decision suggested that airlines fly twice a week to all destinations mentioned, except for Tivat, where airlines should fly three times a week during the summer period. It is expected that scheduled flights will be established from 1 July 2019 and to be active until June 30, 2023.

7. Tourism

The region's tourist traffic increased the number of arrivals by 17% in 2018 compared to 2017, and the number of overnight stays by 23%, which led to an increase in income from residence tax.

Table 5. Value of residence tax MRT in RCC of the Nišava, Pirot and Toplica Administrative Districts in period I-XII 2018

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Economic trends in the territory Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts

Value of residence tax Name RCC and LSG MRT in the RCC municipalities Republic of Serbia RCC of the Nišava, Pirot and Toplica 61.752.000 Administrative Districts City of Niš, total 26.780.000 Niš-GO Medijana 11.895.000 Niš-GO Pantelej 2.580.000 Niš-Go Cveni Кrst 1.420.000 Niš-GO Niška Banja 3.758.000 Niš-GO Palilula 7.127.000 Aleksinac 1.550.000 Doljevac - Merošina - Ražanj - Gadžin Han - Svrljig 730.000 City of Pirot 8.500.000 Bela Palanka 968.000 Babušnica - Dimitrovgrad 2.650.000 City of Prokuplje 3.650.000 Blace 730.000 Кuršumlija 16.194.000 Žitorađa - Source: Tourist Organizations of the municipalities of RCC of the Nišava, Pirot and Toplica Administrative Districts

8. Employment and earnings

8.1. Registered employment (by local government units)

In 2016, there were 135774 employees in the RCC of the Nišava, Pirot and Toplica Administrative Districts, or 6.7% of the employees in the Republic of Serbia. Table 6. Registered employment in 2015 and 2016 Number of employees Contribution (2016), % Index Name RCC and LSG Republic of 2015 2016 RCC 2016/2015 Serbia Republic of Serbia 1989617 2009785 100,0 - 101,0 Regional Chambers of Commerce and Industry 126134 135774 6,76 100,00 107,64 of the Nišava, Pirot and Toplica Administrative

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Economic trends in the territory Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts

Districts City of Niš, total 68327 75458 3,75 55,58 110,44 Niš-GO Medijana 39551 35374 1,76 26,05 89,44 Niš-GO Pantelej 6711 7978 0,40 5,88 118,88 Niš-Go Cveni Кrst 9804 13139 0,65 9,68 134,02 Niš-GO Niška Banja 2108 2467 0,12 1,82 117,03 Niš-GO Palilula 10153 16500 0,82 12,15 162,51 Aleksinac 8698 8960 0,45 6,60 103,01 Doljevac 1756 4610 0,23 3,40 262,53 Merošina 1487 1677 0,08 1,24 112,78 Ražanj 1096 1120 0,06 0,82 102,19 Gadžin Han 1706 1483 0,07 1,09 86,93 Svrljig 2355 2420 0,12 1,78 102,76 City of Pirot 14449 15136 0,75 11,15 104,75 Bela Palanka 1735 1694 0,08 1,25 97,64 Babušnica 2108 2137 0,11 1,57 101,38 Dimitrovgrad 2250 2332 0,12 1,72 103,64 City of Prokuplje 12347 10796 0,54 7,95 87,44 Blace 2293 2306 0,11 1,70 100,57 Кuršumlija 4094 3997 0,20 2,94 97,63 Žitorađa 1733 1648 0,08 1,21 95,10 Source: Statistical Office of the Republic of Serbia *Registered employment includes employees in legal entities (companies, companies, cooperatives, institutions and other organizations), entrepreneurs and registered individual farmers

8.2. Earnings

The average salary in the RCC of the Nišava, Pirot and Toplica Administrative Districts was 31.8% lower than the nation average. Compared to the same period of 2016, the average net salary increased by 3.9%.

Table 7. Average earnings net of taxes and contributions (net) in 2015 and 2016 Net earnings, in RSD Contribution (2016), % Index I-XI Name RCC and LSG Republic of 2016/ I-XI I-XII 2015 I-XII 2016 RCC Serbia 2015 Republic of Serbia 46097 47893 100,0 - Regional Chambers of Commerce and 34964 36328 75,85 100,0 103,90 Industry of the Nišava,

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Economic trends in the territory Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts

Pirot and Toplica Administrative Districts City of Niš, total 37998 39194 81,83 107,88 103,14 Niš-GO Medijana 41793 43257 90,32 119,07 103,50 Niš-GO Pantelej 32520 33227 69,38 91,46 102,17 Niš-Go Cveni Кrst 47435 49417 103,18 136,03 104,18 Niš-GO Niška Banja 32703 32387 67,62 89,15 99,03 Niš-GO Palilula 35538 37683 78,68 103,73 106,04 Aleksinac 37683 40477 84,52 111,42 107,41 Doljevac 33682 34875 72,82 96,00 103,54 Merošina 33301 35550 74,23 97,86 106,75 Ražanj 30573 31511 65,79 86,74 103,07 Gadžin Han 27770 28242 58,97 77,74 101,70 Svrljig 29663 29065 60,69 80,01 97,98 City of Pirot 48005 52705 110,05 145,08 109,79 Bela Palanka 28060 28009 58,48 77,10 99,82 Babušnica 37760 38144 79,64 105,00 101,02 Dimitrovgrad 30912 31757 66,31 87,42 102,73 City of Prokuplje 34231 35440 74,00 97,56 103,53 Blace 32785 35256 73,61 97,05 107,54 Кuršumlija 34631 36396 75,99 100,19 105,10 Žitorađa 35268 36840 76,92 101,41 104,46 Source: Statistical Office of the Republic of Serbia

9. Unemployment

According to the records of the National Employment Service, at the end of December 2016, 10.6% of the unemployed in the Republic of Serbia were registered in the RCC of the Nišava, Pirot and Toplica Administrative Districts. The largest number of unemployed was recorded in the territory of the City of Niš, the City of Pirot, the City of Prokuplje and the municipality of Aleksinac.

Table 8. Unemployed persons, the situation at the end of December 2015 and 2016 Unemployed persons Contribution (2016), % Index Name RCC and LSG Република 31122015 31122016 ЈЛС 2016/2015 Србија Republic of Serbia 703020 678837 100,0 - 96,6 Regional Chambers of Commerce and Industry of 72407 72351 10,66 100,00 99,92 the Nišava, Pirot and Toplica Administrative Districts City of Niš, total 32111 30680 4,52 42,39 95,54 Niš-GO Medijana 9429 9045 1,33 12,50 95,93 Niš-GO Pantelej 5963 5704 0,84 7,88 95,66 Niš-Go Cveni Кrst 4618 4306 0,63 5,95 93,24 Niš-GO Niška Banja 2523 2426 0,36 3,35 96,16 Niš-GO Palilula 9578 9199 1,36 12,71 96,04 Aleksinac 7213 7187 1,06 9,93 99,64

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Economic trends in the territory Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts

Doljevac 2212 2015 0,30 2,79 91,09 Merošina 2156 2206 0,32 3,05 102,32 Ražanj 674 688 0,10 0,95 102,08 Gadžin Han 1272 1294 0,19 1,79 101,73 Svrljig 1625 1819 0,27 2,51 111,94 City of Pirot 7206 7033 1,04 9,72 97,60 Bela Palanka 1926 1897 0,28 2,62 98,49 Babušnica 1399 1344 0,20 1,86 96,07 Dimitrovgrad 1364 1387 0,20 1,92 101,69 City of Prokuplje 7315 6982 1,03 9,65 95,45 Blace 1717 1675 0,25 2,32 97,55 Кuršumlija 3183 3180 0,47 4,40 99,91 Žitorađa 2958 2964 0,44 4,10 100,20 Source: National Employment Service

10. Foreign trade of goods

The foreign trade of the economy of RCC Niš reached ~ 2.3 billion euros in 2018, with exports amounting to 1,337 billion euros, and imports of 982 million euros. The realized surplus in the exchange at the level of RCC Niš amounted to 355.2 million euros. There is surplus in the trade of goods for Pirot and Prokuplje, as well as municipalities: Aleksinac, Blace, Kuršumlija, Babušnica, Svrljig, Merošina, Bela Palanka and Ražanj, while higher import/export ratios were in the City of Niš (5 city municipalities) and the municipalities of Žitorađa, Doljevac, Gadžin Han and Dimitrovgrad.

Compared to 2017, in 2018, trade in goods increased in the cities and municipalities of Niš, Pirot, Svrljig, Kuršumlija, Dimitrovgrad, Gadžin Han and Doljevac, while it was reduced to Ražanj, Bela Palanka, Žitorađa, Merošina, Blace, Babušnica, Aleksinac and Prokuplje.

Table 9. Review of foreign trade commodity exchange for 2018

Particip Particip Total Index Index Import ation in ation in commodity Export (000 2018 --- Import 2018 --- Balance coverage by Name RCC and LSG export imports exchange EUR) 2017 (000 EUR) 2017 (000 EUR) exports of RCC of RCC (000 EUR) (in%) (in%) (in%) (in%) (in%) Regional Chambers of Commerce and Industry of the Nišava, Pirot and 23192003 13371884 103,7 8,2 9820118 101,7 4,5 3551 36,2 Toplica Administrative Districts City of Niš, total 10231958 4893492 106 36,6 5338467 106,4 54,3 -444975 96,9

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Economic trends in the territory Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts

Niš-GO Medijana 1457111 562498 111,0 4,2 894613 122,2 9,1 -332115 62,9 Niš-GO Pantelej 1118146 641189 101,2 4,8 476957 109,1 4,9 164232 134,4 Niš-GO Palilula 797284 168028 116,3 1,3 629257 123,9 6,4 -461229 26,7 Niš-Go Cveni Кrst 6571455 3345942 106,3 25,0 3225514 100,3 32,8 120428 103,7 Niš-GO Niška Banja 287962 175835 95,1 1,3 112126 76,4 1,1 63709 156,8 City of Pirot 7551774 5368952 114,9 40,2 2182822 111,5 22,2 3186131 246,0 City of Prokuplje 2512830 1427399 84,7 10,7 1085430 82,6 11,1 341969 131,5 Aleksinac 1840407 1028969 89,2 7,7 811438 90,0 8,3 217532 126,8 Babušnica 238435 134763 88,0 1,0 103673 82,3 1,1 31090 130,0 Svrljig 230582 123759 123,0 0,9 106823 132,7 1,1 16936 115,9 Blace 148681 123181 83,1 0,9 25500 50,5 0,3 97681 483,1 Кuršumlija 148234 122198 100,1 0,9 26036 62,9 0,3 96162 469,3 Merošina 129331 81974 88,2 0,6 47356 91,6 0,5 34618 173,1 Dimitrovgrad 72430 33990 114,9 0,3 38440 112,8 0,4 -4449 88,4 Gadžin Han 36866 16177 114,3 0,1 20690 119,1 0,2 -4513 78,2 Doljevac 16863 2638 119,2 0,0 14226 113,8 0,1 -11588 18,5 Žitorađa 16678 4100 69,5 0,0 12578 58,7 0,1 -8478 32,6 Bela Palanka 10940 5565 97,5 0,0 5375 81,2 0,1 189 103,5 Ražanj 5994 4728 19,8 0,0 1266 108,3 0,0 3462 373,5 Source: Statistical Office of the Republic of Serbia

The most prevalent products exported from the territory of RCC Nis (CT4) in 2018 were new external pneumatic tires (~ 113,000 tons, ~ 508 million EUR, 38%), cigars, cigarillos and cigarettes, tobacco and smoked tobacco (~ 25,000 tons, 157 million EUR, 11.7%), insulated wire, cables and other electrical conductors (~ 8.100 tons, ~ 136 million EUR, 10.1%).

The most common products in the imports for the territory of RCC Niš (CT4) in 2018 were unclassified goods by CT (~ 23,000 tons, ~ 90 million EUR, 9.1%), tobacco, raw or unmanufactured tobacco waste (~ 16,000 tons, ~ 60 million EUR, 6.2%), insulated wire, cables and other electrical conductors (~ 5.700 tons, ~ 54 million EUR, 5.5%).

In exports during 2018, the most important partner countries were Germany, Italy and the UK (~ 30% of exports), and in imports, the most important countries were Germany, Italy and (~ 34% of imports).

Table 10. A review of 15 countries, the most important foreign trade partners, ranked according to the value of exports and imports, in 2018

Participation Participation Country name - Export RCC in export of Country name - Import RCC in imports of export (mln EUR) RCC import (mln EUR) RCC (in%) (in%) Germany 152,49 11,4 Germany 164,38 16,7

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Economic trends in the territory Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts

Participation Participation Country name - Export RCC in export of Country name - Import RCC in imports of export (mln EUR) RCC import (mln EUR) RCC (in%) (in%) Italy 146,22 10,9 Italy 83,75 8,5 United Kingdom 97,53 7,3 Turkey 81,44 8,3 France Russian 95,73 7,2 73,95 7,5 Federation Spain 72,17 5,4 China 72,92 7,4 Russian Federation 69,89 5,2 Poland 33,11 3,4 Poland 54,97 4,1 Hungary 30,83 3,1 Hungary 53,15 4,0 Bulgaria 29,74 3 Japan 48,90 3,7 France 28,72 2,9 Turkey 47,99 3,6 27,81 2,8 Czech Republic 43,09 3,2 Slovakia 27,22 2,8 Romania 42,48 3,2 Czech Republic 25,29 2,6 Bosnia and USA 38,32 2,9 20,87 2,1 Herzegovina Bulgaria 27,97 2,1 Belgium 20,06 2 Algeria 26,10 2,0 Netherlands 17,96 1,8 TOTAL first 15: 1,017 76,2 738,05 74,9 Source: Statistical Office of the Republic of Serbia

11. Structure of the economy

In 2017, there were 5666 active companies in the Regions of the Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts (by 4.7% more than in 2016) and 15665 entrepreneurs (by 5.4% more active entrepreneurs in relation to 2016). Table 11. Structure of the economy, in the period 2015, 2016 and January-June 2017 Structure of the economy 2015 2016 January-June 2017 Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts Number of companies

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Economic trends in the territory Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts

Structure of the economy 2015 2016 January-June 2017 Active 5191 5410 5666 Newly established 328 374 387 Deleted / extinguished 147 122 158 Number of entrepreneurs Active 14056 14862 15665 Newly established 2613 2540 2520 Deleted / extinguished 2406 1745 1728 Source: Business Registers Agency

Note: The register of business entities is a unique, central and electronic database in which an entrepreneur, a company, a cooperative and a cooperative association, a public company, a branch and a representative office of a foreign company, as well as other forms of organization in the Republic of Serbia, are subject to registration in accordance with the law, and in accordance with EU directives.

12. Foreign direct investments in the territory of the RCC Nis

Significant foreign direct investments were made in the territory of the RCP Nišavski, Pirotski and Toplički district districts and especially in the Nisava administrative district, while the largest foreign investors were: YURA CORPORATION, SHINWON, BENETTON (Olimpias Group), JOHNSON ELECTRIC, LEONI, INTEGRATED MICRO ELECTRONICS, ASTER , ZUMTOBEL. In the Toplica Administrative District, the largest foreign investors in the previous period were LEONI, BIZLING. In Pirot's administrative district, the largest foreign investors were TIGAR TYRES and E MIROGLIO.

Methodological notes

The Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts includes the following units of local self-government: the City of Nis with its municipalities (Nis- GO Medijana, Niš-GO Pantelej, Niš-GO Palilula, Niš-GO Crveni Krst, Niš-GO Niška Banja ), Aleksinac, Doljevac, Merošina, Razanj, Gadžin Han, Svrljig, Pirot City, Bela Palanka, Babušnica, Dimitrovgrad, Prokuplje City, Blace, Kuršumlija, Žitorađa.

Some values are rounded to millions or billions, with one decimal place, therefore the total values (summaries) do not always agree with the collection of individual data, since uncomplicated numbers are used (which gives more precise data). Degree of development: The Regulations on the Establishment of a Single List of Development of the Region and Local Self-Government Units for 2014 (Sl. RS, No. 104/2014) regions are classified according to the degree of development in developed regions (Belgrade Region and Region) and underdeveloped (Sumadija Region and Western Serbia, the Region of South and East Serbia and the

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Economic trends in the territory Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts

Region of Kosovo and ), while the local self-government units are classified into groups I, II, III and IV and devastated areas:  Group I (above the national average) - in this group there are 5 local self-government units;  Group II (80% -100% of the national average) - in this group there is 1 local self-government unit;  Group III (60% -80% of the national average) - in this group there is 1 local self-government unit;  Group IV (below 60% of the national average) - there are 12 local self-government units in this group, within which 19 local self-government units fall into devastated areas (below 50% of the national average)

Registered employment: The term "employees" means persons who have a formal legal employment contract, or an employment relationship with an employer, for a fixed or indefinite period; persons working outside the employment relationship, on the basis of a contract of employment or on the basis of a contract on the performance of temporary and occasional affairs; persons who perform independent activities or are founders of companies or entrepreneurial shops; as well as persons who perform agricultural activities, and are located in the records of the Central Registry of Compulsory Social Security.

Regional GDP: Calculation of regional gross domestic product, as part of the system of national accounts of the Republic of Serbia, is based on the principles and methodology of the European System of National and Regional Accounts (ESA 2010), and the Nomenclature of Statistical Territorial Units of the Republic of Serbia (NSTJ), which is in accordance with the European Classification of Statistical Territorial Units (NUTS). For the Region of Kosovo and Metohia, there are currently no reliable statistical data and they are not included in the calculation. Regional GDP represents the regional equivalent of gross domestic product, as the most important macroeconomic aggregate of a national economy and an indicator of its productivity and efficiency in the production of products and services necessary for different types of consumption. Regional GDP is the sum of the added value of all local units operating in the territory of a given region (plus product taxes reduced by product subsidies), while gross value added (GVA) represents the total value of output (output) of goods and services minus intermediate consumption, ie products and services used as inputs in the process of creating an output. Calculation of the regional gross domestic product was carried out using the production approach at the level of NSTJ 2 (region) and NSTJ 3 (area) There are no data at the level of local self-government units that are part of the administrative districts. Size of companies: According to the Law on Accounting ("Official Gazette of RS" No. 62/2013) legal entities are classified into large, medium, small and micro companies. The size is determined according to the criteria for classification of legal entities prescribed by the Law in the following manner: average number of employees, business income and average value of business assets (two of the three stated criteria determine the size). Those who do not exceed two of the following criteria are classified into micro-legal entities: average number of employees - 10, business income - 700 thousand euros and average value of business assets - 350 thousand euros. In small legal entities, those who do not exceed

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Economic trends in the territory Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts two of the following criteria are classified: average number of employees - 50, business income - 8.8 million euros and average value of business assets - 4.4 million euros. The average legal persons are those who do not exceed two of the following criteria: average number of employees - 250, business income - 35 million euros and average value of business property - 17.5 million euros. Legal entities crossing the two criteria for medium-sized legal entities are classified into large legal entities.

The Annual Bulletin of Financial Statements provides an overview of aggregate data for statistical and other needs for legal entities and entrepreneurs operating in the Republic of Serbia. The data for companies include active companies and companies in bankruptcy and liquidation, as well as branches of foreign legal entities. In addition, cooperatives are included as a form of organizing natural persons who, on cooperative principles, realize economic, social and cultural interests. This group also provides data for public companies that perform activities of general interest, and are established by the Republic of Serbia, an autonomous province or a local self-government unit. The group of public enterprises is comprised of those applying the Accounting Act. Data for entrepreneurs include individuals who independently carry out economic activities for the purpose of gaining profit, which books run under the dual bookkeeping system and accordingly apply the Accounting Act.

Sources of data

For the preparation of the document "Economic Trends in the Territory of Regional Chambers of Commerce and Industry of the Nišava, Pirot and Toplica Administrative Districts " the data of institutions were used: 1. Statistical Office of the Republic of Serbia 2. Agricultural, advisory expert service of Niš, Pirot and Prokuplje 3. National Bank of Serbia 4. Agency for Business Registers of the Republic of Serbia

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